Loan Insurance

It’s a normal situation when to start their own business or develop the existing business people borrow money. But what if a self-employed person for the health reasons is not anymore able to work and earn an income? Who will cover their loans? Loan insurance is a perfect choice for the self-employed, the key to their financial security.

Would your business be put at risk if you became injured or disabled? Would you need to use your personal savings or other assets to help pay off your company’s business loans? If you are self-employed, you should give loan insurance some serious thought, especially if you don’t have disability insurance. Loan insurance covers your debts if you are unable to work due to illness or accident. The benefits are not taxable and can be used to cover all sorts of debts made for business purposes:

Lines of credit

RRSP loans

Personal loans

Mortgages

Car loans and leases

Any other long-term loans with regular payments

In the event of disability, a cancer diagnosis or death, loan insurance helps pay off any loans that a self-employed person has made. Moreover, getting the insurance is easy: in most cases, you simply have to answer only a few questions.

Generally, loan insurance has the following features:

Life insurance coverage: if you die the loan insurance pays off the insured balance of your loan

Life insurance coverage: if you are diagnosed with a critical illness such as cancer the loan insurance pays a lump sum to help you cope financially

Life insurance coverage is up to $1,000,000

Disability insurance coverage: If a disability prevents you from working, the disability insurance coverage provides up to $7,000 per month towards loan payments

Accidental dismemberment coverage: Included with your life insurance at no additional cost, this coverage pays up to $50,000 against outstanding loans if you suffer an accidental dismemberment

Premium calculated based on the loan balance, so you pay a fair premium for the real risk your loan represents

Insurance benefits can be paid for as long as the total disability persists or until the loan is completely repaid.